KLA-Tencor Corporation (KLAC)
Interest coverage
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,092,500 | 4,086,060 | 3,649,320 | 2,518,720 | 1,478,740 |
| Interest expense | US$ in thousands | 311,253 | 296,940 | 160,339 | 157,328 | 160,274 |
| Interest coverage | 9.94 | 13.76 | 22.76 | 16.01 | 9.23 |
June 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,092,500K ÷ $311,253K
= 9.94
The interest coverage ratio for KLA-Tencor Corporation has varied over the past five years, ranging from a low of 9.23 in 2020 to a high of 22.76 in 2022. This ratio indicates the company's ability to meet its interest obligations through its operating earnings. A higher interest coverage ratio suggests that the company is more capable of servicing its debt with its current earnings.
The significant increase in interest coverage from 2020 to 2022 indicates improved financial health and a stronger capacity to meet interest payments. However, there was a slight decrease in the ratio in 2023 and a further decline in 2024, although it still remains at a relatively healthy level.
Overall, the trend in KLA-Tencor Corporation's interest coverage suggests a generally stable and financially sound position, although monitoring future changes in the ratio will be important to assess the company's ability to continue meeting its interest obligations effectively.
Peer comparison
Jun 30, 2024